Senate Narrowly Passes First Budget in Four Years
So finally, the Senate passes a budget. (Wall Street Journal) How is it possible to run a country without a budget? Well, simple really, the government doesn’t have to play by the same rules you and I do. Can you imagine if you just didn’t keep track of your finances for four years? Just continue to spend like there was no tomorrow and if you felt like you were getting too deep in debt, just announce that you are going to extend or raise the amount of debt you are going to have?
The U.S. Senate narrowly passed the budget. Do they ever pass anything with everyone in agreement? I doubt it. The budget plan was passed by a 50-49 vote in the Democratic-controlled chamber. Four Democratic senators facing tough re-election campaigns in 2014 joined all the Senate Republicans in opposing the measure, which seeks to raise nearly $1 trillion in new tax revenues by closing some tax breaks for the wealthy.
I’m a bit confused as to how the government method of accounting works. They’re going to raise $1 trillion by closing some tax breaks, OK, I guess I buy that, although I think it is more speculation than fact. But I recently heard the president say that by increasing the debt ceiling to $16 trillion instead of $18 trillion he has reduced our National debt by $2 trillion.
…What?
Congress will be out of town for a two-week spring recess.
I guess after three months of work, Congress is worn out and needs a little va-ca. I guess passing a major tax increase, raising the federal debt limit, allowing $85 billion in spending cuts to take effect and enacting a bill to keep the government operating only through Sept. 30, really takes it out of you.
This budget mess is not over. It still needs to pass the house and we all know that it is not going to be that easy. With the Democrat controlled Senate and Republican controlled House, it seems like nothing ever gets done. Well, nothing of any importance. If there is a spotted, ring-neck, hootie bird spotted in a field in Whocares county in the state of Ridiculous, they have no problem agreeing that there should be millions spent of studying it and determining why it will only crap when it is facing north. …or some such nonsense.
The problem is that each side has a different view on how our country should be run. The Democrats, keeping up the stereotype, seem to be all about tax and spend and “entitlement” programs with no regard for a budget, whereas the Republicans appear to be for a smaller government and controlled spending.
The House wants a balanced budget by 2023
The House plan ostensibly brings the government’s taxes and spending into balance by 2023 with cuts to domestic spending even below the levels of automatic across-the-board cuts roiling federal programs now, and it orders up dramatic and controversial changes to Medicare and the tax code.
The Senate plan, by contrast, includes $100 billion in upfront infrastructure spending to bolster the economy and calls for special fast-track rules to overhaul the tax code and raise $975 billion over 10 years in legislation that could not be filibustered. Even with that tax increase and prescribed spending cuts, the Senate plan would leave the government with a $566 billion annual deficit in 10 years, and $5.2 trillion in additional debt over that window.
As if all of this isn’t enough to make your head explode, coming this summer… Congress must again raise the government’s statutory borrowing limit or risk defaulting on the federal debt. …The good ole Debt Ceiling problem is coming back.
So the Senate passed a budget, the first in 4 years, but guess what? It will never be passed into law as it is. …and no one seems to every compromise.
I think it’s better for me to just stick my head back in the sand and stop watching the news.
…I have had just about enough.
Latest in Financial News
Keeping up with the latest in financial news can be a hassle. It is important if you want to keep a step ahead of debt or other financial troubles but it can often seem like too big of a task to manage on your own. If you are the type of person who reads multiple newspapers every day, then the good news is that you should be reasonably up to speed on things. If you don’t read the newspaper daily and just rely upon word of mouth, though, then chances are that you may be falling behind on things.
So let’s fix that. Down below is a list of current hot button financial issues and decisions currently being debated. Whether it is debt, student loans, or car recalls no information is too small to be overlooked by the savvy and smart consumer.
Toyota: The media coverage which the company has been under for the past month has been overwhelming. By now, most Americans know that Toyota cars have dangerous problems with them (uncontrollable acceleration being the biggest concern) and their faith in the automotive giant has been shaken.
But are you also aware that now is the best time to buy a Toyota vehicle from a financial point of view? Toyota is currently offering the highest discounts on its vehicles in its entire history. If you think that Toyota has fixed the problems with its vehicles or you are just a person looking for a good deal, then check Toyota’s offer out. Toyota vehicles get great gas mileage, something which should help you save even more money in the long run should you choose to purchase one (barring accidents, of course). And before this current crisis, the Toyota brand was thought to be one of the safest on the road.
Student Loans: Student loans and governmental grants may be in for a big change. Congress is currently contemplating legislature that would allow it to cut out the “middlemen”, or contractors, who usually dole out the governments allocated student education money. They hope that by doing so more students will receive the funds that they need in order to attend college.
Good News: If you are a college student or are currently supporting a student’s education, then there is a good chance that you will be able to save money. The government getting directly involved will mean more money for you and less for the people that you talk to in order to get it. Bad News: If you work for a company that used to be in the business of giving out government grants, then you are looking at tough times. Local economies in places like Nebraska (where many of these companies are located) will also be hit by this. And finally, because the federal government is getting involved, be prepared for more forms – not fewer.
A final bit of news is that Congressional Democrats are trying to merge the student financial aid bill with the Health Care Bill. Because the financial aid bill is a popular congressional motion that many senators and representatives do not want to vote against, the Democrats believe that merging the two will gain the Health Care Bill the votes that a Reconciliation move (which is a way for Congress to forcibly pass a bill through in such a way as to make it impossible to filibuster or delay) would require.
Debt: What about it? Debt is the same as always. People get into financial trouble, find themselves with no credit left, and think themselves to be powerless to change things. But that is not true. Thanks to the current economic crisis, companies and experts on debt management have sprung up right and left. Debt, credit, and financial aid groups have advertised like never before in order to get you to use their services. Many of these groups are good at what they do, but there is always one or two that just want to take your money.
But don’t let this stop you. If you are in trouble financially and are thinking about declaring bankruptcy, experts are nearly a must have. They can keep the creditors off of your back and help you to get yourself financially stable again. While you might be able to do it on your own, it is incredibly difficult to do; you will have to learn a massive amount of new information while at the same time cutting back on things and/or earning more money.
If you are in debt, need a reverse mortgage settlement, or require some other form of financial advice then please, seek help immediately! Reliable groups such as debthelper.com (a non-profit debt help organization) are around because of debt related problems. It is quite literally their job to help people at the end of their rope.
The Economy: Is the economy improving, getting worse, or doing neither? Well, in a nutshell it is doing all of the above. Major sectors of the economy (such as retail) have seen recent improvements, but signs are indicating that these improvements are temporary. According to a Reuter’s article, experts claim that the current economic recovery will slow down this summer, with job losses also slowing down by that time.
Good News: Currently, the U.S. economy is doing better. Businesses are choosing to not fire employees in fear of continuing problems. And companies are hiring temporary workers, allowing people who are currently unemployed the chance to jump back into the job market.
Bad News: While it has slowed, the loss of full time jobs is still continuing. Additionally, with things unlikely to get dramatically better anytime soon, companies are cautious about hiring new full-time workers. We may have hit and begun to climb up from rock bottom, but we are still a long way off from the top of the mountain.
If you read this post and found it useful, then feel free to leave a comment. Advice, questions and criticism are both appreciated and encouraged. Speak up and let your fellow readers know what’s going on!
Additional Links:
Reuters Economic News Article
Reuters Report on Toyota Discounts Article
New York Times Economic News Article
New York Times Student Load/Health Care Bill Article
Blog Post on Student Loans: Linked Here
DEBTHELPER.COM 